St. Louis petitions state politicians to restore net neutrality

Last year, the Federal Communications Commission voted to repeal net neutrality, a set of regulations intended to protect internet users. Now, leaders of eight St. Louis co-working spaces are calling on Missouri congressional lawmakers to join national efforts that could reverse the commission’s decision.

Their call came Wednesday as U.S. Sen. Ed. Markey, D-Mass., filed a petition that would force the U.S. Senate to vote on the future of net neutrality. The 2015 regulations bar internet providers from controlling internet speeds, among other things. The Senate must vote by June 12 on whether to allow or block the FCC’s repeal.

What is net neutrality? Read more.

Nebula Coworking owner Jason Deem coordinated with the founders of T-REX, HIVE44, Nexcore, CIC St. Louis, CLAIM, UCity Coworking and TechArtista to write an open letter supporting the measure.

Repealing net neutrality would hurt co-working space clients including small businesses trying to innovate in technology markets and nonprofit organizations seeking social reforms, according to the founders’ letter.

Deem said he was spurred to coordinate the letter by the concerns of small business owners and activists who are members at Nebula.

“The main issue is that the repeal of net neutrality could put small businesses and start-ups at a considerable disadvantage compared to large businesses that could afford to pay more for services,” he said.

The letter is addressed to U.S. Sens. Claire McCaskill and Roy Blunt and U.S. Reps. Lacy Clay and Ann Wagner.

Asked for comment, a representative for Blunt’s referred tothe Republican senator’s  December 2017 statement where he supported repealing net neutrality. Blunt wrote that the net neutrality rules “created a barrier to the investment and innovation we need to grow our economy and close the digital divide between rural towns and bigger cities.”

Democrat McCaskill’s office responded to a request for comment by referring to a statement from January when she co-sponsored a Senate proposal to maintain net neutrality rules. In the statement she said that “consumers should have protected, free, and open access to the online content of their choosing.”

Co-working concerns

The Consumers Council of Missouri is among the concerned Nebula members. The nonprofit group work to inform Missourians about health care, personal finance and home utility issues.

Cara Spencer, executive director of the Council, said the potential for internet providers to block content could jeopardize the nonprofit’s work. Spencer also serves as alderwoman of St. Louis’ 20th ward.

“What happens if the content we put out is not in the best interest of the internet service providers or those that work well with them? Could they block content?” Spencer asked. “This is really a threat not only to consumers but to free speech, or anyone who’s advocating on issues that may not be popular with the folks that can pay for preferential internet access.”

She said net neutrality’s repeal could also make the internet look more like politics, where those with the most money have the ability to exert outsized influence. Spencer said the council is also concerned that if internet providers could charge companies for access fees, those increased costs could be passed on to customers.

FCC chairman Ajit Pai, who voted against the rules in 2015, has argued that repealing net neutrality would instead help consumers by creating more competition and encouraging internet providers to invest in networks in low-income areas.

The letter also urges Missouri’s representatives to reject bills that wouldn’t let states develop independent net neutrality laws and back an amicus brief for a potential lawsuit drafted by U.S. Congresswoman Anna Eshoo, D-Calif., and Markey.

Reps. Clay, a Democrat, and Wagner a Republican, could not be reached for comment on Wednesday afternoon.

http://news.stlpublicradio.org/post/st-louis-co-working-spaces-petition-state-politicians-restore-net-neutrality#stream/0

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Will a governor’s scandal upend ratemaking reform?

Each of the past two years, a filibuster by a few state senators in the final days of the legislative session stymied a utility-backed ratemaking bill in Missouri.
This year, the utility bill survived a 22-hour Senate filibuster in February (Energywire, Feb. 12). Now the question is what happens in the final days of a legislative session that has been consumed by the scandal enveloping Gov. Eric Greitens (R).
Greitens goes on trial Monday in St. Louis on felony invasion of privacy charges related to an extramarital affair he had in 2015. The governor faces separate charges of illegally obtaining a donor list from the veterans charity he founded and using it to raise money for his campaign in 2016.
Back at the Capitol, the Legislature will convene 30 minutes after the regular session wraps up May 18 to consider impeachment proceedings against the first-term Republican after 138 House members and 29 senators signed a petition calling for the special session. The unprecedented situation throws into question what the General Assembly will get done in its final week, which is a frenzied time even under usual circumstances.
“Missouri legislators are worried that many of their priorities, such as utility regulation, could fall victim to the usual rush of last-minute business and the unusual rush of impeachment business,” said David Robertson, a political science professor at the University of Missouri, St. Louis.
St. Louis-based Ameren Missouri, the state’s largest utility with 1.2 million customers, led the lobbying push for ratemaking reforms. The utility has for years complained that “regulatory lag” in Missouri prevented the company and others from earning maximum authorized profits.
Utility officials said yesterday that they’re hopeful the bill will pass the House as written during the next eight days and advance to the governor’s desk. But they provided little insight as to when that might happen.
“It is on the House calendar, and it will go to the floor when the House leadership chooses to have it go to the floor,” Ameren Corp. CEO Warner Baxter said during the company’s first-quarter earnings call.
It’s not the first time the Legislature has been close to passing the utility bill as the deadline approached. Executives noted that it has been the Senate that blocked the legislation in previous years. And if the House passes S.B. 564 without amendments, it will go to the governor’s desk.
“We have never been this close, never been this far through the process,” Ameren Missouri CEO Michael Moehn said.
The bill is supported by all the state’s electric suppliers and local and state chambers of commerce and labor unions. Opposition has come from consumer groups, including industrial energy users.
The legislation’s key provision would authorize a ratemaking change to enable utilities to begin book depreciation and earn a return on investments as soon as they’re placed in service instead of waiting months or years until the conclusion of a rate case.
Ameren said the change won’t just benefit shareholders. Improving profitability will encourage the utility to make an incremental $1 billion in grid investments over the next five years that will improve reliability and create jobs. The bill would freeze utility base rates until 2020 and cap annual increases at 2.85 percent through 2023.
S.B. 564 would also enable utilities to offer lower rates to new large energy users as an economic development incentive and authorize utility regulators to pass through savings retroactive to Jan. 1 tied to the reduction in the corporate income tax rate.
Ameren has said the tax savings would amount to $133 million, or almost 5 percent based on current rates.
Opponents of the bill, from big industrial power customers to residential ratepayer advocates, said there’s nothing in the bill to benefit consumers. They say Missouri’s grid is reliable, utilities are financially healthy and rates are low. In their eyes, the bill is aimed at boosting profits.
Critics also point out that utilities in other states have voluntarily agreed to pass through tax savings to customers. But in Missouri, the tax savings are being used as political leverage.
John Coffman, an attorney for the Consumers Council of Missouri, said amendments have been proposed that would clarify issues related to the bill’s tax refund provisions. One involves whether the Public Service Commission could approve refunds outside a rate case. The other issue involves whether rate caps in the legislation are based on the utility rates before the tax cut, or after.
“Those are two things people are actively trying to fix in the legislation,” he said.
Coffman is among those who doesn’t think Greitens’ legal problems will have any effect on whether the bill passes. If anything, he said, the scandal has taken attention away from what else is happening at the Capitol.
If the bill passes the House, it would need to be sent to the governor’s desk by May 30.

 

https://www.eenews.net/energywire/stories/1060073547/

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Utilities and Opponents are Playing Hardball with Rate Reform

by the Editorial Board for the St. Louis Post-Dispatcth

Ameren Missouri’s cherished rate-reform bill, which has sat dormant in the Missouri House since being passed by the state Senate in mid-February, is meeting 11th-hour challenges — and a threat to force full disclosure of all the money spent to pass it. Missouri consumers’ best hope is for Senate Bill 564 to die before the legislative session ends May 18.

Groups representing both residential and large industrial power users have raised significant doubts about Ameren’s claims that it would benefit consumers by capping rate increases at 2.85 percent per year for residential customers and 2 percent for industrial users.

Opponents argue that changes to the way that the state’s three investor-owned utilities calculate expenses would lead to an effective rate increase of 8 percent to 10 percent — or as much as 20 percent in the view of the Consumers Council of Missouri.

In the Senate, despite political dangers from rate hikes in an election year, a few labor Democrats joined the GOP majority to pass the bill 25-6 in February.

The bill stalled while the House considered its own measure. But as the state’s attention turned to the drama of Gov. Eric Greitens’ upcoming trial in St. Louis, legislative leaders quietly pushed this week for the House to pass the Senate bill without amendments. That would enable it to go back to the Senate for final passage without the threat of a filibuster in the session’s last week.

House leaders indicated Wednesday they were willing to break their promise to allow full and open debate, and to push for a quick vote.

In response, Sen. Doug Libla, R-Poplar Bluff, drafted a letter to Missouri Public Service Commissioner Daniel Hall to immediately require the three investor-owned utilities to disclose all of their political donations and lobbyist spending since 2014. In February, Sen. Rob Schaaf, R-St. Joseph, calculated that the utilities had contributed $900,000 to legislators.

Greitens received about $180,000 from Ameren alone, not counting any undisclosed donations to his “dark money” committee. The PSC can order utilities to disclose dark money contributions.

Even with rate caps in place, SB 564 would allow utilities to potentially make tens of millions more each year from a tool called “Plant In-Service Accounting.” Almost every dollar spent on capital investments could be quickly charged to customers without having to gain PSC approval. Ameren argues that it needs the change to modernize its electric grid, but this accounting tool also would allow it to quickly charge consumers for maintaining the old grid.

Ameren also is holding hostage some $133 million a year in tax savings from the federal tax cut bill that should be returned to customers in the form of a 4.9 percent rate cut. Ameren has done so in Illinois but says Missouri regulators tie its hands. This is not a posture that inspires trust.

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